Match the element to the correct definition according to the International Accounting Standards Board's Conceptual Framework for Financial Reporting? Element Definition A resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. Expense Liability The residual interest in the assets of the entity after deducting all its liabilities. A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits. Asset Decrease in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities. Equity

Match the element to the correct definition according to the International Accounting Standards Board's Conceptual Framework for Financial Reporting? Element Definition A resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. Expense Liability The residual interest in the assets of the entity after deducting all its liabilities. A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits. Asset Decrease in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities. Equity

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Match the element to the correct definition according to the International Accounting
Standards Board's Conceptual Framework for Financial Reporting?
Element
Definition
A resource controlled by the entity as a result of past events and from
which future economic benefits are expected to flow to the entity.
Expense
Liability
The residual interest in the assets of the entity after deducting all its
liabilities.
A present obligation of the entity arising from past events, the
settlement of which is expected to result in an outflow from the entity of
resources embodying economic benefits.
Asset
Decrease in economic benefits during the accounting period in the form
of outflows or depletions of assets or incurrences of liabilities.
Equity

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